Since Sept 24, 2018, vegetable seeds grown in China have faced a 10% tariff when they arrive in the U.S. Many of those seeds are then sold to Canada. Canada grows a lot of vegetables in greenhouses and sells the produce domestically or back to the United States. They purchase the seeds for these greenhouses from the United States. The United States purchases the seed from contract seed producers in China.
The U.S.-China trade war and new tariffs on Chinese goods are raising the price of vegetable seeds for Americans and Canadians alike. The current tariff will increase at to 25% this week. In 2018, the sales to Canada fell by over 8% (almost $3m).
What impact will that have on U.S. vegetable seed sales & the Canadian producers?
I will be discussing how businesses can adjust to higher tariffs today on the FREE Germination Retail Roundtable Webinar.